FCC

Deere Construction sales fall 12% in 2024

2024-12-09

Deere & Co. reported fiscal 2024 sales of $51.7 billion, down 16 per cent from $61.3 billion in 2023. Sales in agriculture were down 22 per cent, and sales in construction and forestry dropped 12 per cent. Net income for the year was $7.1 billion, a 30 per cent drop from income of $10.2 billion in 2023.

“Amid significant market challenges this year, we proactively adjusted our business operations to better align with the current environment,” said John May, chairman/CEO, in a statement. “Together with the structural improvements made over the past several years, these adjustments enable us to serve our customers more effectively and achieve strong results across the business cycle.”

Fourth quarter sales dropped 28 per cent for Deere, with construction down 29 per cent. In its outlook for fiscal 2025, Deere expects construction equipment sales in the US and Canada to be down around 10 per cent with its compact construction sales dropping about 5 per cent. Global roadbuilding, which includes the Wirtgen product line, is expected to remain flat.

Company leaders told analysts to expect further softening in demand for earthmoving equipment in 2025. Although the level of construction work is still “robust” and money designated for government infrastructure spending remaining to be awarded, the company said its customers are facing strong competition is driving down bids and project margins. Elevated interest rates and a re-fleeted rental industry is diminishing near-term equipment demand.